Session 2 Ops Strategy
Session 2 Ops Strategy
Session 2 Ops Strategy
McGraw-Hill/Irwin 2-1
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Operations and Operations Strategy
2-2
Sustainable Strategy
• The firm’s strategy describes how it will create and sustain
value for its current shareholders
• Shareholders – individuals or companies that legally own one or
more shares of stock in the company
• Stakeholders – individuals or organizations who are directly or
indirectly influenced by the actions of the firm
• Adding a sustainability requirement means meeting value
goals without compromising the ability of future
generations to meet their own needs
• Triple bottom line – evaluating the firm against social,
economic, and environmental criteria
2-3
Triple Bottom Line
2-5
Triple Bottom Line
Give example from
your experience where
one of the elements is
missing!
2-7
Competitive Dimensions
Price
• Make the product or deliver the service cheap
Quality
• Make a great product or delivery a great service
Delivery Speed
• Make the product or deliver the service quickly
Delivery Reliability
• Deliver it when promised
2-8
Other Product-Specific Criteria: “Support It”
Technical liaison and support
• A supplier may be expected to provide technical assistance for product
development
Meeting a launch date
• A firm may be required to coordinate with other firms on a complex project
Other dimensions
• These typically include such factors as colors available, size, weight, location of
the fabrication site, customization available, and product mix options
2-9
Trade-Offs
2-10
Order Winners and Order Qualifiers
2-11
Strategies are Implemented Using Operations and
Supply Chain Activities
2-12
Supply Chain Risk Examples
2-14
Risk Mitigation Strategies
Risk Risk Mitigation Strategy
2-15
Risk Mitigation Strategies Continued
Risk Risk Mitigation Strategy
2-16
Risk Assessment Matrix
2-18
Partial Measures of Productivity
2-19
Thanks
2-20
Summary
• A strategy that is sustainable needs to create value
• Shareholders are equity owners in the company
• Stakeholders are individuals and organizations that are influenced by the firm
• Operations and supply chain strategy involves setting the broad policies for
using a firm’s resources
• Coordinates operational goals with those of the larger organization
• Strategies are implemented through a set of activities designed to deliver
products and services in a manner consistent with the firm's overall business
strategy
• Operations and supply chain strategies need to be evaluated relative to their
riskiness
• Supply chain disruptions are unplanned and unanticipated events that disrupt
the normal flow of goods and materials
• Supply chain coordination risks and disruption risks
• Productivity measures are used to ensure that the firm makes the best use of
its resources
2-21